HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Dow drops 800 points as W... » Reply #15

Response to orangecrush (Original post)

Wed Aug 14, 2019, 07:44 PM

15. Reuters is giving the Marmalade Shart Cannon full credit for this

Reuters says that this "has Trumps fingerprints all over it"


NEW YORK (Reuters Breakingviews) - A U.S. recession warning from financial markets has Donald Trumpís fingerprints all over it. A key bond market metric turned negative for the first time since 2007 on Wednesday, sending stocks tumbling. Other economic indicators in the United States and abroad are deteriorating. The common thread linking these is the presidentís trade war.

The U.S. economy started the year with a good head of steam. Growth hit a three-year high of 2.9% in 2018, corporate coffers were swelling from the tax cuts the president signed into law a year earlier, and unemployment stood at the lowest level in nearly a half century. Sluggish growth overseas and a negative market reaction to the Federal Reserveís December rate hike suggested some fragility, but virtually nobody was predicting a recession before 2021.

The White House has since escalated trade tensions, with Trump twice in the past three months announcing tariff increases affecting some $500 billion of imports from China.

As a result the yield on the Treasuryís benchmark 10-year note has since early May fallen by nearly a percentage point, to 1.59% Wednesday afternoon. Earlier in the day it briefly traded below the return on the Treasuryís 2-year note, something investors havenít seen since June 2007. That spooked equity markets, with the S&P 500 Index down nearly 3% in early afternoon trading.

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 15 replies Author Time Post
orangecrush Aug 14 OP
TheBlackAdder Aug 14 #1
orangecrush Aug 14 #6
spanone Aug 14 #2
orangecrush Aug 14 #3
Doodley Aug 14 #4
orangecrush Aug 14 #5
Doodley Aug 14 #12
orangecrush Aug 14 #13
BeyondGeography Aug 14 #7
orangecrush Aug 14 #8
BeyondGeography Aug 14 #10
Liberal In Texas Aug 14 #9
Loge23 Aug 14 #11
Gothmog Aug 14 #14
LineNew Reply Reuters is giving the Marmalade Shart Cannon full credit for this
RainCaster Aug 14 #15
Please login to view edit histories.